Thanks Postino for the reply, I will try to answer your questions.
The gouge doesnt really look like a grinder mark, but I suppose it could be. It is about 1/16 of an inch wide probably smaller, and is obvious to me whover or whatever did this started at the 7 in 1937 and ended at the 1. It looks to me like a punch was held on an angle and driven through the numbers. The stock lug is there, bore looks good, I would say there is 85% of the original blueing left, grips are nice, not broken or cracked by the screw and there is no pitting.
I sure wish I could get some pics for you but i can't at this point.
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